For a price of $36, the optimal order quantity is

Shoe Stores carries a basic black dress shoe for men that sells at a rate of 500 each quarter. Their current policy is to order 500 per quarter, with a fixed cost of $30/order. The annual holding cost is 20% of the cost of items held. The following cost structure is applicable: Order Quantity Price/pair 0-99 $36 100-199 32 200-299 30 300+ 28

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